Accounting Course

ACC 112 Project IC (2) Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared losses and gains in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: The Balance Jaijairam Company Sheet December 20, 2016 Assets Liabilities and Owners' Equity Cash $80,000 Notes Payable $91,000 Land 204,000 Nicholas Jay, Capital 74,000 Buildings 164,000 Kamla Paul, Capital 203,000 Stephanie Ram, Capital 80,000 Total Assets $448,000 Total Liabilities & Owners' Equity $448,000 Under the following four independent assumptions, prepare the journal entries for the sale of the "land" and "buildings", allocation of any loss or gain, any deficit(s), the payment of the liability, and the distributions to the partners, if: 2) The "Land" and "Buildings" were sold for $283,000. Date Account Titles and Explanation Debit Credit 2016 Dec. 20 (To record the sale and realization of noncash assets) 20 (To allocate the loss or gain on realization to partners) 20 (To record payment of partnership liability) 20 7171 (To record distribution of cash to partners)